It is determined and declared to be necessary and conducive
to the protection of the public health, safety, welfare and convenience
of the City to collect charges from all users who contribute wastewater
to the City's treatment works. The proceeds of such charges so derived
will be used for the purpose of operating, maintaining and retiring
the debt of such public wastewater treatment works.

The quantity of oxygen utilized in the biochemical oxidation
of organic matter under standard laboratory procedure in five (5)
days at twenty degrees Centigrade (20°C), expressed in milligrams
per liter (mg/l).

All expenditures during the useful life of the treatment
works for materials, labor, utilities and other items which are necessary
for managing and maintaining the sewage works to achieve the capacity
and performance for which such works were designed and constructed.

Expenditures for obtaining and installing equipment, accessories
or appurtenances which are necessary during the useful life of the
treatment works to maintain the capacity and performance for which
such works were designed and constructed. The term "operation
and maintenance" includes replacement.

Any devices and systems for the storage, treatment, recycling
and reclamation of municipal sewage, domestic sewage or liquid industrial
wastes. These include intercepting sewers, outfall sewers, sewage
collection systems, individual systems, pumping power and other equipment
and their appurtenances; extensions, improvement, remodeling additions
and alterations thereof; elements essential to provide a reliable
recycled supply such as standby treatment units and clear well facilities;
and any works that will be an integral part of the treatment process
or is used for ultimate disposal of residues resulting from such treatment
(including land for composting sludge, temporary storage of such compost
and also used for the storage of treated wastewater in land treatment
systems before land application) or any other method or system for
preventing, abating, reducing, storing, treating, separating or disposing
of municipal waste or industrial waste.

The user
charge system shall generate adequate annual revenues to pay costs
of annual operation and maintenance including replacement and costs
associated with debt retirement of bonded capital associated with
financing the treatment works.

That portion of the total user charge collected which is designated for operation and maintenance including replacement purposes as established in Section 720.040 shall be deposited in a separate non-lapsing fund known as the Operation and Maintenance and Replacement Fund and will be kept in two (2) primary accounts as follows:

An account
designated for the specific purpose of ensuring replacement needs
over the useful life of the treatment works (Replacement Account).
Deposits in the replacement account shall be made at least annually
from the operation, maintenance and replacement revenue in the amount
of sixty-six thousand seven hundred fifty dollars ($66,750.00) annually.

Fiscal
year-end balances in the operation and maintenance account and the
replacement account shall be carried over to the same accounts in
the subsequent fiscal year and shall be used for no other purposes
than those designated for these accounts. Monies which have been transferred
from other sources to meet temporary shortages in the Operation, Maintenance
and Replacement Fund shall be returned to their respective accounts
upon appropriate adjustment of the user charge rates for operation,
maintenance and replacement. The user charge rate(s) shall be adjusted
such that the transferred monies will be returned to their respective
accounts within the fiscal year following the fiscal year in which
the monies were borrowed.

For all
contributors, user charges shall be based on water used during the
current month. If a commercial or industrial contributor has a consumptive
use of water or in some manner uses water which is not returned to
the wastewater collective system, the user charge for that contributor
may be based on a wastewater meter or separate water meter installed
and maintained at the contributor's expense and in a manner acceptable
to the City.

For those
contributors who contribute wastewater, the strength of which is greater
than normal domestic sewage, a surcharge in addition to the normal
user charge will be collected. The surcharge for operation and maintenance
including replacement is:

$.17 per pound of BOD in excess of 3.33 pounds per 1,000 gallons
(400 ppm).

Any user
which discharges any toxic pollutants which cause an increase in the
cost of managing the effluent or the sludge from the City's treatment
works or any user which discharges any substance which singly or by
interaction with other substances causes unidentifiable increases
in the cost of operation, maintenance or replacement of the treatment
works shall pay for such increased costs. The charge to each such
user shall be as determined by the responsible plant operating personnel
and approved by the Board of Public Works.

All users
shall be billed monthly. Billings for any particular month shall be
made within thirty (30) days after the end of that month. Payments
are due when the billings are made. Any payment not received within
twenty (20) days after the billing shall be delinquent.

A late
payment penalty of ten percent (10%) (minimum five dollars ($5.00)
maximum one hundred dollars ($100.00)) will be added to each bill
after twenty (20) days. When any bill is thirty (30) days in default,
rendition of water and/or sewer service to such premises shall be
discontinued until such bill is paid following due notice and opportunity
for hearing.

The Board
of Public Works will review the user charge system annually and revise
user charge rates as necessary to ensure that the system generates
adequate revenues to pay the costs of operation and maintenance including
replacement and that the system continues to provide for the proportional
distribution of operation and maintenance including replacement costs
among users and user classes.

The Board
of Public Works will notify each user at least annually, by public
notice published in the local newspaper, of the rate being charged
for operation and maintenance including replacement of the treatment
works.